markets braced for bigger falls at the open. that plus a brutal session in tokyo. the japan stock market has just had its worst day for almost 30 years. and the latest online romance con. we take a look inside a crypto scam that cost victims billions. welcome to business today. i am michelle fleury. there are two things that seem to be driving it — friday's disappointment about how fewjobs the us economy added injanuary, and japan's decision to increase interest rates last week. as you can see the us markets have opened lower. dowjones losses are down over 1000

points. the snp 500 is down 4% and the nasdaq, where we have seen some of the biggest losses, that is down over 6% at the opening bell. and this is what happened injapan. and the picture across europe. and as i was saying a lot of this negative sentiment seems to be because only 11a,000 jobs were added to the us economy injuly, that was much lower than expected, raising fears the the world's biggest economy is slowing. and on wednesday japan's central bank increased the cost of borrowing, with its main interest rate going to "around 0.25%", which is the highest in 15 years. as a result september 18th is one day many people are looking to, that's when the us federal resere will makes its latest interest rate decision and investors are wondering if they will cut the cost of borrowing enough

to stimulate the economy. katie kaminski is chief strategist and joins us from boston. what is going on with the markets. is it rational or irrational? it looks very much like the market is experiencing a recession trade, risk of behaviour, and we have to remember the market has been priced for a goldilocks scenario, a situation where tighter rates and tighter policy doesn't have strong economic consequences. as a result we are starting to see people come to terms with, or at least have a trigger point, that may be that is not the case, and as a result a lot of people are trying to take profit on high valuations.— of people are trying to take profit

on high valuations. let's talk about nvidia's share _ on high valuations. let's talk about nvidia's share price. _ on high valuations. let's talk about nvidia's share price. it _ on high valuations. let's talk about nvidia's share price. it was - on high valuations. let's talk about nvidia's share price. it was one - on high valuations. let's talk about nvidia's share price. it was one of. nvidia's share price. it was one of the hottest stocks. did things become overpriced and now this is just people retreating or is it a sign there is more danger in the economy than people had previously anticipated? i economy than people had previously antici ated? ~ ., ., anticipated? i think we have to oint out anticipated? i think we have to point out that _ anticipated? i think we have to point out that data _ anticipated? i think we have to point out that data has - anticipated? i think we have to point out that data has been i anticipated? i think we have to - point out that data has been coming in the week for about two months, and the narrative in the markets has been shifting. initially we were thinking about inflation as concern. that has tempered. now the narrative is moving towards the potential to monster man destruction and economic weakness. if you look at some of the data like housing, it isn't doing as well and manufacturing data has been weak for some times. we are seeing consumer debt rising. so the question is, is the market ready for a correction because there is economic weakness? that will be fuelled by more economic uncertainty or political uncertainty, and as well as high valuations, will cause people to want to get out of those positions. fix,

people to want to get out of those ositions. �* ., ., , ., , ., positions. a lot of people are lookin: positions. a lot of people are looking towards _ positions. a lot of people are looking towards america's i positions. a lot of people are - looking towards america's central bank and what they will knew next. you have the ecb that has cut already, easing there. japan has just hiked. how is that feeling into what we are seeing? is this just a us story that markets around the world are reacting to other other factors at play? i world are reacting to other other factors at play?— factors at play? i think it's a bit of both. what's _ factors at play? i think it's a bit of both. what's most _ factors at play? i think it's a bit| of both. what's most important factors at play? i think it's a bit i of both. what's most important of the us is that this type of data and this type of market reaction suggests that there is a lot more pressure on the fed than there was a week ago. as a result with september the 18th so far away i think there is going to be a lot of concern about how the fed can react or could they react faster. i know pricing on great heights went up significantly in the last few days. you are seeing that nonlinear moves that people are really realising that this is going to have to be dealt with. katie kaminski. _ to have to be dealt with. katie kaminski, thank _ to have to be dealt with. katie kaminski, thank you _

to have to be dealt with. katie kaminski, thank you so - to have to be dealt with. katie kaminski, thank you so much | to have to be dealt with. katie i kaminski, thank you so much for joining us on this fast—moving day. thank you forjoining us on the programme. if this was sparked by a growth scare and we had that weak data last night on manufacturing and then the jobs report on friday, data last night on manufacturing and then thejobs report on friday, can you give us a sense of how bad things are right now with the us economy? it’s things are right now with the us econom ? �* , ., things are right now with the us econom ? �*, ., ., , ., ., economy? it's not a question of thins economy? it's not a question of things being — economy? it's not a question of things being bad _ economy? it's not a question of things being bad right _ economy? it's not a question of things being bad right now. - economy? it's not a question of| things being bad right now. they economy? it's not a question of - things being bad right now. they are definitely soft. if the feds can wait for things to be bad then it is too late. there is a lag in the time between the fed acting and when the economy response. the issue under concern here is not so much that we are in a recession today, because we are in a recession today, because we are not, but what we are in is the position where you are getting all these warning flags and signs saying

that if the fed doesn't start to cut and cut a lot soon, we will be in recession by the end of the year. president of the federal reserve bankin president of the federal reserve bank in chicago was saying that we shouldn't read much into one or two pieces of data and reiterated the line we have heard from fed chair jerome powell that the fed is data dependent. do you agree with that? i don't. i do in the sense that i understand what he is saying but thatis understand what he is saying but that is the trap that the fed, all central banks really, fall into. we need one more data point, we need a bit more, we don't want to react one data point. all well and good, but we are starting from a point in the short term money is at 5.5% and inflation is essentially 3%. that is a 2.5, 250 basis point spread. money

is tight, and the longer they stay there the greater the odds that you are going to be in recession at some point. the weaker data, the weaker earnings data that we have seen beyond the seven there, it is all telling the same story. not a recession that the economy is weakening and if they are going to wait to see actual collapsing data and say oh, here we are, it is too late. it and say oh, here we are, it is too late. ,., , and say oh, here we are, it is too late. , ~' and say oh, here we are, it is too late. , ~' ,, ~' late. it sounds like you think fed is behind the _ late. it sounds like you think fed is behind the curve. _ late. it sounds like you think fed is behind the curve. what - late. it sounds like you think fed i is behind the curve. what happens next? does that mean a bigger rate cut in september or what the market seem to be asking for right now, could we see an emergency rate cut on the table? at could we see an emergency rate cut on the table?— on the table? at this point i don't think we will— on the table? at this point i don't think we will an _ on the table? at this point i don't think we will an emergency - on the table? at this point i don't think we will an emergency rate l think we will an emergency rate cut unless they sell of the equity market, which at this point i think is some of their own for exuberance or certain stocks coming back. unless there is some emergency i see

a mid cut. the cut again, do they cut 50 basis points in september? if we see another sub—100 thousand job numberfour august, and we we see another sub—100 thousand job number four august, and we see weak retail sales as well injuly and august, the answer is yes. and really, by any model, including john taylor of the taylor rule, he says it should be 4%. so they have a long way to go and if they want to take their time cutting that's their business, but the cost of that will be a much more rapid acceleration and cutting later on when we are already in recession. this is about avoiding recession, which was always their promise. their promise was, we could get to 2% without inflation, without a recession, and if the economy starts to slow and we have a

lower inflation rate we in the fed will not let the funds rate pushes into recession. that is what we are. job not yet done then. thank you very much. to tech now and what's known as a "pig butchering" online scam. this is apparently a type of romance scam that uses fake online personas to trick people into fraudulent investments. heard of the phrase? me neither, but the approach — as you'll see — may be all too familiar. 0ur cyber correspondent joe tidy decided to find out more when he was targeted on instagram by fraudsters pretending to be a woman called jessica.

so that's how it all started. it was a direct message on my personal instagram, but i, of course, knew straightaway this was some sort of scam. it had to be, but i wasn't sure which. so i decided to play along. i want to see if these pictures are of a real person. they're being used by lots of scammers on dating sites. and here is the real person — a german influencer. i'll warn her that her pictures are being used. this explains a lot. jessica has just sent me a screenshot of her cryptocurrency profits — $47,000 — and she's basically saying, "you can be rich too." so, as suspected, and much to my wife's relief, this is indeed a pig butchering

scam. jessica has now asked me to spend some money. i said, "i've only got £200." and what's interesting is, jessica has made me feel very poor. we've been doing this really complicated process of fake trading now, well over an hour, and i can see my profits rising. but of course it's all fake. there's no way that people would go through this process if there wasn't that little hook of potential romance. this isn'tjust about the money. this is about something more romantic. in the flurry of instructions thatjessica sent me, she accidentally sent me one of her own instructions, which has chinese writing. also, if you look at one of her pictures from the very early days of her instagram account, that, too, has some items in a shopping trolley that are in chinese. i wonder where she is. what i do know is, they're making a lot of money. sometimes these people involved

in pig butchering, they are, in a sense, victims themselves. they're part of big call centres that kind of lock you in and take your passport. so i want to know who is behind the jessica account. we've had eight weeks of keeping up this pretence and now they've just dropped it. and now they're trying another way to get money. i don't really believe what they're saying is true. i think they're just trying to find a way to get me to pay them more money. in other news... love ta nser love tanser is one of several airlines to extend its suspension of flights to the middle east is of growing tensions in the region. it splays won't fly to tel aviv and will avoid iraqi and iranian

airspace until august the 7th. —— lufthansa. austrian airlines middle east cancellations. austrian airlines has announced that all its flights to tel aviv and to tehran will be cancelled until 12th august, inclusive. last week it announced that the flights would be cancelled until 8th august. social media app tiktok has agreed to permanently withdraw its lite rewards progamme from the european union to comply with the bloc�*s digital services act. the rewards programme allows users to earn points while performing certain tasks on the platform such as watching videos, liking content, following creators or inviting friends to join. the dow drops a thousand points. nasdaq created 6%. stay with us here on bbc news.

hello from the bbc sport centre. plenty of action from day 10 at the olympics to start with. no medal for us gymnast simone biles in the beam.